Tempur-Pedic agreed to acquire mattress company Sealy Corp. (ZZ) in a deal valued at $229 million that will combine two leading industry rivals with well-known brands. Sealy shareholders will receive $2.20 a share, a premium of 2.8% to Wednesday’s close. Sealy shares rose 3.7% to $2.22 premarket, while Tempur-Pedic jumped 8.9% to $29.17.

Thor’s fiscal fourth-quarter earnings rose 20% as the company reported its recreational vehicle business saw double-digit sales growth. Shares were up 11% at $38.26 in premarket trading as earnings and revenue were better than expected.

Hewlett-Packard Co. (HPQ) shares drop 2.4% to $16.70 premarket as Jefferies cut the PC-giant to underperform from hold and dropped its target to $14 from $17. Jefferies expects HP to give fiscal-year 2013 guidance “well below” Street consensus, citing soft PC demand, a deep slump in printers and customers’ weak confidence in its Business Critical servers, despite its recent court win against Oracle Corp. (ORCL). While HP could have another go at making smartphones or tablets, Jefferies said in a note to clients that so far “almost all PC OEMs have failed to gain significant traction in consumer tablets/smartphones.”

Achillion Pharmaceuticals Inc. (ACHN) said there was positive proof-of-concept results with its hepatitis C treatment ACH-3102. Shares of the biopharmaceutical company rose 5.4% to $10.00 premarket as the firm said the second generation inhibitor achieved “potent antiviral activity.” Achillion also initiated enrollment in a Phase 2 clinical trial evaluating the treatment plus Ribavirin.

Discount retailer Dollar General Corp. (DG) has unveiled a 30 million-share offering, following similar offerings in recent months. The shares are being sold by Dollar General shareholders and the company won’t get any of the proceeds KKR & Co. has slowly scaled back its stake in Dollar General, and the retailer had about 333.7 million shares outstanding on Aug. 27. Shares off 3.8% at $50.87 in premarket trading.

BioMarin Pharmaceutical Inc. (BMRN) said a midlevel study of its investigational treatment for adults born with a rare birth defect is showing long-term tolerability and signs of efficacy, and expects to start an advanced study of the drug.

Cepheid (CPHD) expects its third-quarter revenue to fall short of previous targets due to supply interruptions for molecular testing parts.

Clarcor Inc. (CLC) said Chief Executive Christopher Conway will take on the added title of chairman, as the filter and packaging company also unveiled a 13% raise to its quarterly dividend.

Eagle Materials Inc. (EXP) is offering three million shares to help fund its planned acquisition of Lafarge SA 's (LFRGY, LG.FR) aggregate, cement and concrete activities in Missouri and Oklahoma. Eagle said Wednesday that the $446 million deal, which includes two large cement plants, will allow it to benefit more fully from the U.S. construction industry recovery. Eagle Materials had around 45.4 million shares outstanding as of Sept. 25.

H.B. Fuller Co.’s (FUL) fiscal third-quarter profit surged as the paint and adhesive maker benefited from restructuring efforts and increased revenue across its regions. But the company lowered its full-year revenue estimate, citing a slight slowdown in the industrial adhesives end markets.

Summit Hotel Properties Inc. (INN) launched an offering of 10 million shares, raising funds in part for its planned acquisition of 10 hotels, eight of them properties of Hyatt Hotels Corp. (H). The hotel-focused real-estate investment trust had roughly 31.5 million shares outstanding as of Sept. 25.

Worthington Industries Inc.’s (WOR) fiscal first-quarter profit jumped 32% as the steel-processing and metal-products company reported improved sales in its pressured cylinder business, and improved profit margins. Chief Executive John McConnell said the company has seen some slowing in the automotive, agriculture and mining issues. The longer-term impact of this slowing remains uncertain, he added.

Comments (4 of 4)

What is it they say? Wait until the majority of analysts predict a stock will go down... At that point in time you can safely make a substantial commitment to that stock.

The fact is, HP has a lot going for it, but is experiencing difficulties due to past management decisions. Ms. Whitman, however, is a new breed of manager, and may very well shepherd the company to new heights. Now that she's made her obligatory housecleaning during the last quarter, perhaps we can expect the current quarter to be solid.

For a previous example of a large company turnaround, look at GE under Jack Welch.... Over the long term, HP has a lot of potential, just as GE did.

10:35 am September 27, 2012

Kevin wrote :

Now is the time for HP to bounce up!!!!

10:34 am September 27, 2012

Anonymous wrote :

It's infuriating that these "analysts" at Jeffries can just throw around mindless comments and not be accountable for their actions - HP isn't making a consumer tablet/smartphone, it's for the enterprise - it is not trying to compete against Apple, they're going into a market that Apple has not yet saturated...But I guess the downgrade by Jeffries doesn't matter because a BIG BIG investor has been scooping up HP shares....Now is the time for this stock to bounce!!!

10:34 am September 27, 2012

Kevin wrote :

It's infuriating that these "analysts" at Jeffries can just throw around stupid comments and not be accountable for their actions - HP isn't making a consumer tablet/smartphone, it's for the enterprise - it is not trying to compete against Apple, they're going into a market that Apple has not yet saturated...But I guess the downgrade by Jeffries doesn't matter because a BIG BIG investor has been scooping up HP shares....

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